Stocks of pharmaceutical companies came under heavy selling pressure today following US President Donald Trump's strong remarks on high prices of medicines and new procedure for bidding on drugs indicating a difficult environment in the US, the largest market for Indian generic drug companies.
Trump urged the US drug companies to come back and manufacture drugs in America rather than abroad. Trump also announced that he will be naming the new head of United States Food & Drug Association (US FDA) soon.
NSE CNX pharma index lost 175.80 points to close at 10,236.40 points today.
Among the major losers, Cadila Healthcare lost 6.76 per cent at Rs 350.55, Glenmark by 2.55 per cent at Rs 893.85, Sun Pharma by 2.55 per cent at Rs 631.50, Aurobindo Pharma by 1.93 per cent at Rs 681 and Lupin by 1.93 per cent at Rs 1,470 on the NSE today.
Analysts said the Indian generic pharma industry has been addressing the need for affordable pharmaceuticals of the US patients and enabled the US government to bring down healthcare spends.
Piramal Enterprises Chairman Ajay Piramal said the high prices in US will impact the patented drugs and not hit branded generics drugs.
India contributes around 30 per cent of the overall volume of generic drugs consumed in US.
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